Quote Originally Posted by Packman41 View Post
And one other point. If you want to calculate the annual grant amount assuming the principal balance is invested, then use a mortgage payment calculation. In this case Present Value is 1.2 billion, Interest is [[assume) 5% and the Term is 20, then the Payment is $6.6 million. Or 10% more to fund each year.
I used Google's mortgage calculator to come up with a monthly payment of just over $7.9 million per month, or about $95 million per year. With a 5% return, the fund will earn around $60 million for the first few years. That is high enough that they may find they have trouble getting applications from enough good causes to donate to.